FISCAL NOTE

Date Requested: February 02, 2016
Time Requested: 02:10 PM
Agency: Higher Education Policy Commission
CBD Number: Version: Bill Number: Resolution Number:
1488 Introduced SB316
CBD Subject: Education (K12)


FUND(S):

0589

Sources of Revenue:

General Fund

Legislation creates:

Neither Program nor Fund



Fiscal Note Summary


Effect this measure will have on costs and revenues of state government.


    Senate Bill 316, if enacted, would remove the requirement that a home schooled student must acquire a general equivalency degree (GED) in order to qualify for a PROMISE scholarship. The bill adds another method by which a person is eligible for a PROMISE scholarship. Students would need to obtain a score within the eightieth percentile on a nationally recognized college entrance or maintain a grade point average of at least 3.0 on a 4.0 grading scale in the required core and elective course work necessary to prepare students for success in post-secondary education at the associate and baccalaureate degree levels as determined by the commission. It is estimated that an additional 292 students would pass the GED and meet other qualifications to receive the Promise Scholarship. It is estimated that the additional costs associated with this proposed legislation would be approximately $1.3 million in Fiscal Year 2016 and the annual cost upon full implementation would be about $4.0 million.



Fiscal Note Detail


Effect of Proposal Fiscal Year
2016
Increase/Decrease
(use"-")
2017
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 0 1,300,000 4,000,000
Personal Services 0 0 0
Current Expenses 0 0 0
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 0 0 0
2. Estimated Total Revenues 0 0 0


Explanation of above estimates (including long-range effect):


    It is estimated that an additional 40 students would pass the GED and meet other qualifications to receive the Promise Scholarship. If the PROMISE scholarship award for these students averaged $4,449, the additional costs for these students in Fiscal Year 2017 would be approximately $177,960. Of the 40 students, it is estimated that 81.5 percent would qualify for the PROMISE scholarship in the second year; 66.7 percent would qualify in the third year; and 58.7 percent would receive the scholarship in the fourth year. If 40 additional first year students receive the PROMISE scholarship each year, the estimated cost upon full implementation would be about $546,159.
    
    In 2015, there were 252 PROMISE applicants who scored the minimum required national test scores to qualify for the Promise Scholarship, but did not have a 3.0 grade point average. Under the proposed legislation, these students could pass the GED test, or if they had scored in the 85th percentile, would then be PROMISE eligible. If the PROMISE scholarship award for these students averaged $4,449, the additional costs for these students in Fiscal Year 2017 would be approximately $1,121,148. Of the 252 students, it is estimated that 81.5 percent would qualify for the PROMISE scholarship in the second year; 66.7 percent would qualify in the third year; and 58.7 percent would receive the scholarship in the fourth year. If 252 additional first year students receive the PROMISE scholarship each year, the estimated cost upon full implementation would be about $3,440,803.
    
    The total estimated cost in the initial year would be $1,299,108 and the total estimated cost upon full implementation would be $3,986,962s estimated cost could increase if any adults who failed to maintain a 3.0 on a 4.0 grading scale in high school as currently required decide to take the GED tests to qualify for the Promise Scholarship instead.
    



Memorandum


    



    Person submitting Fiscal Note: Ed Magee
    Email Address: edward.magee@wvhepc.edu